Market Today 6-July-2012

[RaahiShah]

India’s main indices will be cautious at start, tracking the weak global cues.The Rupee is still under pressure as overseas investors are not convinced about ongoing attempts to shore up growth. Foreign investors are perhaps waiting for more certain action, which is unlikely this month due to the Presidential election.

Sometimes markets behave in a confusing way. The reaction of world equity markets to monetary easing by three top central banks falls is the good example of this trait. Major global stock indices have lost ground despite the monetary stimulus unleashed by central banks in China, Europe and the UK to contain the global economic mess.

As always, the month-end RBI policy meeting will be important after the fresh policy easing done by other central banks. Before that, we will have to face with data on industrial production and WPI inflation. Progress of monsoon and corporate earnings are among the other key variables.

Friday’s monthly jobs data out of the US will be closely tracked to gauge the state of the world’s largest economy.

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